West Texas Intermediate (WTI), the benchmark US crude oil price, attracted fresh buying interest and climbed toward the $93.00 level during the Asian session on Tuesday, following notable two-way price swings the previous day [1]. Despite this upward movement, WTI remains confined within a multi-day trading range as market participants await further developments related to the Middle East crisis, which continues to generate mixed signals [1].
Geopolitical factors are playing a significant role in supporting crude oil prices. US President Donald Trump rejected a peace proposal from Iran aimed at resolving their military conflict and reopening the Strait of Hormuz, maintaining the geopolitical risk premium in the market [1]. Trump also denied a report that he offered Iran sanctions relief and the release of frozen funds in exchange for steps on Iran's nuclear program. However, he confirmed that American and Iranian negotiators exchanged messages on Monday and expected talks to resume this week [1]. Additionally, Saudi Arabia resumed oil exports via its East-West Pipeline after repairing damage from Houthi drone strikes, which has helped ease some supply concerns [1].
From a technical perspective, the near-term bias for WTI remains bullish. The price is holding above the 200-period Simple Moving Average (SMA) on the 4-hour chart and has reclaimed the 38.2% Fibonacci retracement level [1]. Momentum indicators, such as the Relative Strength Index (RSI) hovering just above 50 and a modestly positive Moving Average Convergence Divergence (MACD), support this constructive outlook [1]. Immediate resistance is identified at the 23.6% Fibonacci retracement near $95.31, with a cycle high at $102.04, while initial support lies at $91.15, followed by the 200-period SMA at $89.69 and the 50.0% retracement at $87.79 [1].
The prevailing bullish sentiment surrounding the US Dollar may act as a cap on further gains for USD-denominated commodities like crude oil, according to the analysis [1].
CONCLUSION
WTI crude oil prices are being buoyed by ongoing geopolitical tensions and technical strength, with the market closely watching developments in the Middle East and US-Iran relations. While the near-term outlook remains bullish, the strong US Dollar and key technical resistance levels could limit further upside in the short term.